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Week 9 Tutorial Questions

The document outlines a tutorial for ECON1202, focusing on multivariable calculus applications in business and economics. It includes five questions related to partial derivatives, cost functions, critical points, joint-cost functions, and monopolist profit maximization. Each question is accompanied by brief solutions, providing key numerical results and analytical insights.

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33 views3 pages

Week 9 Tutorial Questions

The document outlines a tutorial for ECON1202, focusing on multivariable calculus applications in business and economics. It includes five questions related to partial derivatives, cost functions, critical points, joint-cost functions, and monopolist profit maximization. Each question is accompanied by brief solutions, providing key numerical results and analytical insights.

Uploaded by

watermelonvine516
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ECON1202 – Quantitative Analysis for Business & Economics

WEEK 9 TUTORIAL: MULTIVARIABLE CALCULUS I

Question 1 (HPW 17.1, Problem 21, p.753)


Find the partial derivative of the following function with respect to each of the variables:

𝑓(𝑟, 𝑠) = 𝑒 !"# ln (7 − 𝑠)

Question 2 (HPW 17.3, Problem 17, p.762)


Suppose the cost c of producing 𝑞$ units of product A and 𝑞% units of product B is given by:
'
𝑐 = (3𝑞$& + 𝑞%! + 4)!

And the coupled demand functions for the products are given by:
𝑞$ = 10 − 𝑝$ + 𝑝%&
𝑞% = 20 + 𝑝$ − 11𝑝%
Also, 𝑝$ = 25 and 𝑝% = 4

(! ) (! )
Find(* ;
" (*# (*# (*"

Note: round your answers to 4 decimal places

Question 3 (HPW 17.4, Problem 14, p. 769)


Find the critical points of the function. For each critical point, determine, by the second-
derivative test, whether it corresponds to a relative maximum, to a relative minimum, or to
neither, or whether the test gives no information.

𝑓(𝑥, 𝑦) = 𝑥 & + 𝑦 & − 𝑥𝑦 + 𝑥 !

Question 4 (HPW 17.4, Problem 33, p.770)


Suppose the joint-cost function:
𝑐 = 𝑞$& + 3𝑞%& + 2𝑞$ 𝑞% + 𝑎𝑞$ + 𝑏𝑞% + 𝑑

has a relative minimum value of 15 when 𝑞$ = 3 and 𝑞% = 1. Determine the values of the
constants a, b and d

Question 5 (HPW 17.4, Problem 35, p.770)


A monopolist sells two competitive products, A and B, for which the demand equations are:

𝑝$ = 35 − 2𝑞$& + 𝑞%
𝑝% = 20 − 𝑞% + 𝑞$

The joint-cost function is:

1
𝑐 = −8 − 2𝑞$! + 3𝑞$ 𝑞% + 30𝑞$ + 12𝑞% + 𝑞$&
2
© Copyright University of New South Wales. All rights reserved. This copyright notice must not be 1
removed from this material.
ECON1202 – Quantitative Analysis for Business & Economics

a) How many units of A and B should be sold to obtain a relative maximum profit for the
monopolist? Use the second-derivative test to justify your answer

b) Determine the selling prices required to realise the relative maximum profit. Also, find
this relative maximum profit. Round your answers to 2 decimal places.

© Copyright University of New South Wales. All rights reserved. This copyright notice must not be 2
removed from this material.
ECON1202 – Quantitative Analysis for Business & Economics

Brief solutions
Q1. 4480; 3492
, $%&
Q2. 𝑓# = −𝑒 !"# ln(7 − 𝑠) ; 𝑓+ = +"-
Q3. -0.1250 ; -0.1250
Q4. (0,0): relative minimum; (-1/2 , -1/4): neither
Q5. a = -8, b = -12, d= 33
Q6. A) qA = 2; qB = 3; b) pA = 30, pB = 19, max profit = $25

© Copyright University of New South Wales. All rights reserved. This copyright notice must not be 3
removed from this material.

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